Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 2

A gross potential rent figure indicates the maximum rental income that could be generated from all units in a property if every unit is rented at the market rate and is occupied at full capacity. This figure does not account for vacancies, concessions, or other factors that might reduce the actual income. It serves as a benchmark for property managers and owners to evaluate performance against actual income received and helps in financial forecasting and budgeting. The importance of this figure lies in its utility for comparing potential revenue across similar properties and assessing the effectiveness of pricing strategies. It offers insight into the potential profitability of a property under optimal conditions, making it a crucial metric in apartment management.